In his letter dated 1, April, 2020, to all accounting officers, Permanent Secretary and Secretary to the Treasury Keith Muhkanaizi gave strict directives on which sectors of government will be a priority as COVID-19 starts to bite the economy.
Mr Keith Muhakanizi directed that “salaries, wages, and pensions will be for all ministries, departments, agencies, and local government.”
He, however, reveals that payments of wages and salaries will start with specific categories.
“Health sector related payments, these include; payments made by Ministry of Health, Regional Referral Hospitals and other health facilities,” he directed, in his fool’s day letter.
Thirdly, he directed further that: “Security sector payments which include; Ministry of Defence, Prisons, Police, State House and Office of the President.”
He concluded that: “Please note that payments outside the above categories are not a priority at the moment and will therefore NOT be handled until later as guided by the lockdown measures by government.”
Government to borrow
On Thursday, Finance Ministry tabled before parliament a proposal to borrow up to Uganda shilling 1.7 trillion to mitigate the effect of the coronavirus pandemic.
The three loan requests were tabled before Parliament by the Minister of State for Planning, David Bahati during the plenary sitting.
The USD100 million is to be borrowed from the International Development Agency (IDA) to finance the health sector, in order to help them mitigate the effects of COVID-19.
Government is also seeking for USD250M for the balance of payment for Bank of Uganda and USD99.8M to finance the competitiveness and Enterprise Development projects.